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Understanding Jharkhand’s Industrial Policy

Jharkhand’s Industrial Policy was created with an aim to enhance value addition of the natural and human resources of the state to create additional employment opportunities. The basic objective of the policy was to utilize the available resources in planned and systematic manner for industrializing the state.


  • To convert the state into a favourable industrial destination for investors.
  • To establish links between large scale and MSME industries.
  • To boost up manufacturing industry and develop downstream processing industries for engineering goods, services etc.
  • To promote skill based eco friendly industries like IT, Biotechnology, Tourism etc.
  • To revive potential sick units and upgrade them.
  • To ensure proper participation of SC/ST/OBC entrepreneurs in industrial development.
  • To set up clear and credible specific measures to improve the investment climate.

Main highlights:

  • One of the main focuses is given to create land bank in each district in a minimum of 200-500 acres of land and polishing them to make industrial estates. Also, land acquisition for industrial enterprises like both voluntary and involuntary are to be done as per the Indian and Acquisition Act and Jharkhand Voluntary Land Acquisition Rule 2010. Industrial Area Development Authorities (IADA) under its command area are responsible for the land acquisition and development of infrastructural facilities, such as roads, drainage, parks, water supply and public utilities. 5% of the revenue generated by IADA is to be used for expenditure on skill development / entrepreneurship development / skill development for disaster and hazards management of land losers etc.
  • A proposal was made to allot mines on preferential basis to industrial enterprises those have put up their plant in the State for value addition to raw material. Efforts are also made to allot more iron ore and coal mines to Jharkhand State Mineral Development Corporation (JSMDC) to enable the Industrial units including MSMEs with adequate financial viability to enter into joint venture with other companies.
  • The policy proposed for the state to make efforts to provide quality infrastructure to investors like all-weather road, uninterrupted power supply, adequate water, connectivity through railways etc. Public-Private-Partnership (PPP) model is where the focus is given by the government. 10% or maximum 25 acre of the land in industrial areas / estates / large industrial area / conglomerate are made available for townships facilitating walk-to-work concept and other infrastructural facilities in such areas.
  • Huge technical manpower is in demand thanks to the upcoming industries. Henceforth, efforts are made through this policy to promote new technical institutions, upgrading the existing ones as well as revive the old units.
  • Development of skilled manpower for utilizing in the industry is in thrust area. Therefore, skill up-gradation is needed.
  • Efforts are made to create entrepreneurial skills among youth through training and programmes. The policy talks about providing special incentives of 50% reimbursement of fee with a maximum of ₹50,000 (for 6 months entrepreneurship course) and ₹1 lakh (for 1 year course) to SC/ST/women pursuing entrepreneurship course from a reputed institute. At the same time an Entrepreneurship Development Institute is to be created for this purpose.
  • The policy also talks about setting up of incubation centres of national level R&D centers and premier institutes of Science and Technology. The policy also talks about opening up knowledge-hub incubators in association with IIM-Ranchi and XLRI-Jamshedpur to help foster startups.
  • The state government initiates development of 2 industrial corridors namely- Koderma – Bahragora and Ranchi-PatratuRamgarh Road.
  • To encourage specialized industrial activities at suitable location, sector specific industrial parks have been envisaged in the State. In this policy, following industrial parks are planned to be set up under Govt, Private, Joint Venture or PPP mode- Apparel Fibre and Textile Park, IT Park / Software Technology Park (STPI), Gems and Jewellery Park, Biotech and Herbs Park, Chemical and Pharmaceutical Park, Food Park, Automobile vendor – ancillary industries park etc.
  • In this policy a special focus has been given onto the MSME sector. They can get tender forms for bidding for free of cost. Also, they are exempted from paying Earnest Money Deposit (EMD) and Security Deposit (SD). Bill discounting facility for them are to be made available on Government Orders.
  • Various schemes of the central government like ASIDE, Credit Guarantee Fund Trust Scheme, Cluster Development Programme for MSMEs, Credit Linked Capital Subsidy Scheme, and Technology Upgradation Scheme are to be made easily available for the industries and entrepreneurs of the state.
  • Promotion of sericulture, handloom and handicraft are to be given preference. Jharkhand ranks first in the country in production of Tasar Silk. So artisans, farmers, craftsmen are to be given adequate chances.
  • The policy also paves way for agro-food processing industries, fish cultivation, automobiles and auto components, energy sector etc.

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